More to hit the streets unemployed as bad 2nd quarter financial results roll in and losses add up
Illustration Racing Talk
The continuing loss of news readers to the Internet, dropping advertising revenues and the recession are taking a punishing toll on the death of newspapers as we know them.
Most of the bigger chains are heavily in debt and unable to weather the storm. Blood pours on the tracks, layoffs and cutbacks are a daily occurrence.
The New York Times acquired the Boston Globe in a highly leveraged deal before the recession. Now they want to either trim the Globe or cut it loose.
Newspaper Death watch reports the Globe is worth $1 in its current money losing state. The Guild rejected wage cuts and the NYT is threatening a 23% across the board cut, which still will not make the Globe profitable.
June 16, 2009 “The financially struggling Seattle Times Co. on Monday sold its Blethen Maine newspapers, including the Portland Press Herald and Maine Sunday Telegram, to an investor group led by a Pennsylvania publisher.” AP
June 14, 2009 “The Columbian Publishing Co. continues to negotiate with its creditors this month in advance of a Chapter 11 bankruptcy court date on July 1. The publishing company owns The Columbian newspaper, the weekly Camas Post-Record newspaper and operates the Web site columbian.com. The company sought court protection from creditors on May 1, reporting an estimated $17 million in debt.” thecolumbian.com
June 18, 2009 “Star Tribune files plan to exit bankruptcy in fall. Newspaper says creditors who hold $384 million in secured debt have approved the proposal. The Star Tribune plans to exit bankruptcy in the fall, about 10 months after a sharp decline in advertising and circulation revenue forced it to default on heavy debt payments.
Other newspaper losses, sales and layoffs
June 18, 2009 “Cleveland Plain Dealer unions agree to pay cuts to help keep paper viable. About 500 union employees of The Plain Dealer have agreed to take pay cuts and furloughs as the paper strives to keep the business viable while advertising revenue sags. Reporters and editors, delivery truck drivers and other union members agreed to 8.1 percent pay cuts and to 11 unpaid furlough days before June 2010. The two moves, contained in an agreement finalized Thursday, translate to a 12 percent wage decrease. They come two months after the paper required its 450 non-union employees to also take 12 percent pay cuts. “
June 18, 2009 – Gannett’s CEO has taken medical leave which raises serious concerns about the troubled media giant. “Concerns about the future of the nation’s largest newspaper publisher, Gannett Inc. (GCI), have intensified this week after the company said Chief Executive Craig Dubow will go on extended medical leave for a second round of back surgery to treat an undisclosed, spine-related ailment. A doctor told the company that the 54-year-old will likely be out of work for four months to address his persistent back problem, said Gannett spokeswoman Tara Connell, who declined to provide more details but noted that Dubow could return to work sooner than expected. ” Wall Street Journal
June 19, 2009 Gannett is rumoured to be laying off 4,500 people in July. “Gannett Co. Inc. — the parent company of the Arizona Republic and USA Today newspapers and Phoenix NBC affiliate KPNX Channel 12 — could be laying off more newspaper workers and cutting broadcaster salaries. A report by the Gannett Blog on Friday references a memo from Gannett CFO Gracia Martore that projects 4,500 newspaper layoffs throughout the Gannett chain in July as well as a 10 percent pay cut for its broadcast employees. The Gannett Blog report also says Gannett workers will not face any more furloughs this year.” Phoenix Business Journal
June 21, 2009 “Globe and Mail (Toronto) workers vote for strike mandate. Workers at Canada’s Globe and Mail newspaper voted 97 percent in favor of authorizing their union to call a strike if they fail to negotiate a new contract, a senior union official said on Sunday. More than 300 of the 311 reporters, circulation and sales staff participating voted in favour of the strike mandate on Saturday said Brad Honywill, president of Local 87-M of the Communications, Energy and Paperworkers Union.” Reuters
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